Source: AFP
G7 finance ministers said on Saturday they were making “progress” in finding ways to use profits from frozen Russian assets to help Ukraine, according to a draft statement from a summit in Italy.
The search for creative but legally valid solutions topped the agenda at the Group of Seven’s two-day meeting in Stresa, northern Italy, as Kiev continues its urgent calls for more funds from Western allies in the third year of its war with Russia.
“We are proceeding with our discussions on possible avenues to advance the extraordinary profits arising from frozen Russian sovereign assets to the benefit of Ukraine, consistent with international law and our respective legal systems,” the ministers said in a draft final statement seen by the AFP.
They hope to present possible options to G7 leaders ahead of a summit in Puglia, southern Italy, on June 13-15.
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They reiterated that the Russian assets frozen by the G7 countries “will remain frozen until Russia pays for the damage it caused to Ukraine.”
In the draft, they added that they “committed to further financial and economic sanctions … including continued targeting of Russia’s energy revenues and future mining capabilities.”
“(The G7 is) ready to impose sanctions on individuals and entities that help Russia acquire advanced materials, technology and equipment for its military industrial base,” the statement added.
The summit — attended Saturday by Ukraine’s Finance Minister Sergii Marchenko — came a day after the United States announced a new $275 million aid package for Kiev, part of a $61 billion military aid deal approved by Congress. last month after months of delays.
Kicking off the finance summit, US Treasury Secretary Janet Yellen had urged her counterparts to embrace “ambitious options” in considering how to use frozen Russian assets.
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A debated U.S. proposal would take advantage of interest on the Russian central bank’s 300 billion euros ($325 billion) in assets frozen by the G7 and the EU, creating a $50 billion loan facility backed by future interest on assets.
Last week, the European Union agreed to a more modest plan, using interest from Russian assets seized by the bloc, which it estimates could yield up to three billion euros a year.
Finance ministers involved in the talks had warned that the Stresa summit was unlikely to produce a concrete deal.
On Friday, French Finance Minister Bruno Le Maire described it as “a political agreement in principle, not a turnkey solution”.
“Concerns” about China’s trade
G7 ministers also expressed concern in the draft statement about China’s trade policies and industrial overcapacity, warning that the bloc could take action to address them.
The United States has raised concerns that a surge in low-cost Chinese exports fueled by Chinese government support for key sectors such as solar and electric vehicles poses a risk to global markets.
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“While reaffirming our interest in a balanced and reciprocal partnership, we express concerns about China’s comprehensive use of non-trade policies and practices that undermine our workers, industries and economic resilience,” the draft statement said.
Saying that the G7 would “continue to monitor the potential negative effects of overcapacity,” he said the group “will consider taking measures to ensure a level playing field, consistent with World Trade Organization (WTO) principles.”
In February, the United States argued that G7 countries should seize the frozen assets, an idea it later backed away from amid concerns among allies that it could set a dangerous legal precedent and that Russia could retaliate .
Source: AFP